Certified Business Analysis Professional (CBAP) Practice Test 2025 – All-in-One Study Resource to Ace Your CBAP Exam!

The method that allows a business analyst to determine whether to create in-house software or to buy from a vendor is cost-benefit analysis. This analytical approach involves comparing the costs and benefits of each option to assess which will provide the best return on investment and align with the organization’s goals.

In the context of software development, cost-benefit analysis evaluates factors such as development costs, potential risks, projected timeframes, ongoing maintenance expenses, and the expected benefits that each option could deliver. By quantifying these elements, a business analyst can present a clearer picture to stakeholders, helping them make an informed decision based on financial viability and strategic alignment.

While impact analysis focuses on the potential effects of a decision or change, and rough order of magnitude cost estimating provides a quick estimation of costs, neither specifically supports the decision-making process regarding in-house versus vendor solutions. Requirements prioritization pertains to determining which project requirements are most critical but does not evaluate the fundamental decision of build versus buy.